The latest survey from a law firm has found that just under a quarter of tenants – 24 per cent – actually took time to read their tenancy agreements.

The firm states the main reason being for such a low uptake is because of living in a digital age where the acceptable norm is for online agreements and quick clicks.

Of those who took part in the survey – 39 per cent – owned up to the fact they signed their contracts which they did not understand and just – 24 per cent – read their tenancy agreements of which women made up 28 per cent with only 20 per cent men reading them.

The survey uncovers what the law firm calls “a concerning trend” of not taking the time to thoroughly review the contract terms and conditions.

The study claims to have found that only 24 per cent read the terms and conditions when they were signing a tenancy agreement, which is similar to only 33 per cent reading the terms and conditions of credit card agreements and 31 per cent doing so when signing up to mobile phone contracts.

A partner of the law firm  has listed the eight most important steps that tenants must take so they can properly understand their agreements: 

1)    The importance of not rushing this process cannot be overstressed. Allocate ample time to review every clause and provision in the contract thoroughly. This ensures you are not pressured into agreeing to terms you haven’t fully understood or considered. A rushed decision can lead to oversight of critical details that might have significant implications down the road;

2)    Contracts can be notorious for their use of complex legal terminology, which can be a major barrier to understanding. Whenever you encounter terms that are unfamiliar, it is advisable to consult a legal expert;

3)     Some sections of a contract are particularly crucial and deserve extra attention. Focus on understanding your obligations, the fees and costs involved, the duration of the agreement, any clauses related to indemnities, liabilities, termination of the contract, and the penalties that might be incurred for early termination or breach of the contract;

4)    Seek clarification. If any part of the contract remains unclear, or if you need further explanation on a specific clause, seek clarification from a legal expert;

5)    It’s not uncommon for contracts to undergo several rounds of negotiation before the final version is ready for signing. Make sure that any verbal agreements, modifications, or last-minute changes discussed are accurately reflected in the written contract. Signing a document that does not fully capture the agreed-upon terms can lead to disputes and misunderstandings;

6)    Consulting with a legal expert can provide an invaluable layer of scrutiny. They can identify potential pitfalls, suggest modifications for your protection, and ensure that the contract aligns with your best interests;

7)    Once signed, ensure you have a copy of the contract for your records. This document serves as your proof of agreement and is vital for reference in case any questions or disputes arise. Keeping organised and accessible records of your contractual agreements can save considerable time and effort in the long run;

8)    Remember, signing a contract is a formal commitment. Fully understanding the terms and conditions before affixing your signature not only protects your interests but also fosters a more transparent and trustworthy contractual relationship.

Blog Post from PIMS

See details of our CHG Guaranteed Rent Scheme here